US-based Modularity will partner with Icelandic data center operator Borealis to build a new data center and submarine cable system in Iceland.
The project, which includes a data center powered by 100% renewable energy, will seek to improve data connections between Iceland and the United States. The first phase of the project will be operational in 2026 and is scheduled for completion in 2028.
No details about the data center or the submarine cable have been shared. “Iceland, renowned for its significant geothermal and hydroelectric energy resources, offers an ideal environment for sustainable high-tech data center operations. By leveraging these unique advantages, we aim to create a robust AI hub in Iceland that not only excels in energy efficiency and environmental sustainability, but also strengthens and expands the existing data center industry in Iceland,” said Bill Barney, co-founder and president of Modularity. Bjorn Brynjulfsson, CEO of Borealis Data Center, added: “This strategic partnership has the potential to create an exciting and dynamic digital ecosystem for AI and position Iceland as a global leader in IT and AI infrastructure, placing Iceland at the forefront of global demands for sustainable AI infrastructure.”
The announcement is the first major step for Modularity since appointing Christopher Pennisi as CEO in July this year. The company was founded in April and specializes in underwater communications networks through prefabricated modular systems. Icelandic operator Borealis, originally founded in 2014, was acquired by Etix Everywhere in 2018. French investment fund Vauban Infrastructure Partners subsequently acquired a majority stake in Borealis Data Center in July 2021. The company currently operates three facilities in Iceland: one in Reykjavík, one in Blönduós and one in Fitjar, Reykjanesbær.
Earlier this year, the operator also acquired a facility in Finland, its first international expansion. Iceland is currently home to the DANICE, FARICE-1, Greenland Connect and Iris submarine cables. The island’s data centers are concentrated in the capital, Reykjavik, and nearby Keflavik. Both atNorth and Verne operate data centers in the latter.
